$1.6bn Chinese soft loan for elevated Monorail in Lahore

[Contrarian]

@Contrarian

Thanks for your reply, but what you have said was already in my mind. I have wondered about the business model of the whole thing and I doubt if it would turn a profit, given that Metro Bus is already a subsidized project as far as its operation is concerned.

It could be that during construction of the first phase of the planned system within 27 months (36 months, 3 years from now) the subsidy would be lifted, adjusting public expectations and allowing the government to pass on the actual costs for this project to be self-sustaining and allow for further investment in Lahore's Metro system.

Another aspect would be expansion of Lahore's metropolitan area. Already a sizeable chunk of population lives outside of the planned system's reach. Notice the South side of the project which is served by three lines. The Southern terminus of all three lines are well inside developed area. Given that the Southern side of Lahore is projected to grow faster than any other, the three Metro lines would already be inadequate by the time they are completed.

(Hey if anyone wishes to reap major profit from real estate investment, they should buy plots South of 'Defence Road' - the one that runs between Mohlanwal on Multan Rd to Kahna on Ferozepur Rd. I am already in buying mode - going to see a site today.)

BRT systems are inherently more expensive to maintain than Monorail or Metro systems friend. But they have minimal capital expenditure by far. That is why turning an operational profit on a BRT is harder.

Turning an op. profit on the Monorail system would be much easier. The idea that you suggested is very doable, however always remember that the capital costs can never be recovered. So there is no point is making the Monorail ticket so expensive in a futile attempt to be able to fund further investment in the Monorail System using the operational systems revenues.

All that is required is that the day to day operational expenditure and maintenance plus interest(which is minimal in case of developmental loans) to the foreign country is covered. There are very few cities that have been able to achieve even this.

I think you are being too harsh on the policy makers here. The system would expand slowly to cover more and more areas by building more lines in the future. Atleast let this start.

Oh and By the way, Monorail/Metro always push up prices in the localities they are in. Try to buy a plot on the main road(as opposed to the locality of the Metro station)- however small - on which the Monorail line will run. You wont regret it

so now we are going to be indebted to China as well..

These kind of loans are different from the IMF kind of loans.
They carry almost negligible interest.

 

[Leader]

These kind of loans are different from the IMF kind of loans.
They carry almost negligible interest.

this is exactly what USA started with.

 

[Contrarian]

this is exactly what USA started with.

In that case, Pakistan should spread its basket of developmental loans to different countries so as to prevent any one country from having too much influence.

 

[Jaanbaz]

Where is electricity to run these mono rails & metro projects?

In Ganjas head.

so now we are going to be indebted to China as well..

When this Sharif family is done with milking this nation dry we will be crying again. Uh oh democracy failed again, same Pakistanis will be dancing for a dictator.

 

[Leader]

In that case, Pakistan should spread its basket of developmental loans to different countries so as to prevent any one country from having too much influence.

as if everyone is carving to give u loaaaaaaaaaannnnnnnnnnnnnnnsssssssss :p

 

[Edevelop]

Pakistanis are the only people in the world discouraging development in their country. Comments made by some members here are just pathetic.

 

[Edevelop]

this is exactly what USA started with.

so now we are going to be indebted to China as well..

Is there any country in this world debt free ? Don't be silly here. Its not like one's bank account. Running a country's financial system is complex

Pakistan cannot afford any mega project, not even Dams.

There are two options on the table.

A) Get Investment. It would require you to hand over the operation to the investor for decades. They would leave once they make profit

B) Get Loans. The option we picked. Its a risk. If planned right, revenue could be generated and loan could be converted into grant.

 

[BATMAN]

I think its Metro Train and Dawn News is a reliable source.

@mods change the title.

not possible on proposed route.

so now we are going to be indebted to China as well..

Opposition for the sake of it!

 

[jarves]

Congratulations to Pakistan!!!

 

[Sankpal]

Congrats

 

[Leader]

not possible on proposed route.


Opposition for the sake of it!

Its called putting things into perspective, and result of having knowledge of how things go by in these matters..

but who cares about the future, its all about now.. typical slave !

Is there any country in this world debt free ? Don't be silly here. Its not like one's bank account. Running a country's financial system is complex

Pakistan cannot afford any mega project, not even Dams.

There are two options on the table.

A) Get Investment. It would require you to hand over the operation to the investor for decades. They would leave once they make profit

B) Get Loans. The option we picked. Its a risk. If planned right, revenue could be generated and loan could be converted into grant.

No country wastes loans like we do.. or maybe there are other Nooras in other countries, hence making a third world !

 

[AZADPAKISTAN2009]

Common Sense

1.6 Billion for 1 MONO RAIL in 1 City !!!!! may be 4 Trains max

= 1600000000 (This money is paid by all citizens of Pakistan) and benefit is very limited to 1 city


Railway Engines which Pakistan Railways have shortage of Locomotives cost per locomotive 2 Million Dollar
That same money can buy Pakistan Railways , 800 Brand new High quality Locomotives
With life of 30 years


800 > 4 trains ....

Infrastructure project (loans) with out planning are same as , shotting a bullet in your head

 

[Edevelop]

Not sure if this is the same project

Govt to start Mono rail in Lahore: Shahbaz

Punjab Chief Minister Muhammad Shahbaz Sharif says the government is planning to start Mono rail in the provincial capital to facilitate the people.

He was presiding a meeting relating to Mono rail in Lahore on Tuesday afternoon.

The Chief Minister said the project will be completed in minimum possible time. He said transparency will be ensured at all cost.

Earlier‚ the Chief Minister was given a detailed briefing about the mono rail project.

Radio Pakistan-
Chief Minister Punjab says project will be completed in minimum possible time.

 

[mmkextreme_1]

Common Sense

1.6 Billion for 1 MONO RAIL in 1 City !!!!! may be 4 Trains max

= 1600000000 (This money is paid by all citizens of Pakistan) and benefit is very limited to 1 city


Railway Engines which Pakistan Railways have shortage of Locomotives cost per locomotive 2 Million Dollar
That same money can buy Pakistan Railways , 800 Brand new High quality Locomotives
With life of 30 years


800 > 4 trains ....

Infrastructure project (loans) with out planning are same as , shotting a bullet in your head

This is the type of mentality that is NOT needed. Does it matter where? In the end it helps everyday PAKISTANI'S!

 

[Edevelop]

This is the type of mentality that is NOT needed. Does it matter where? In the end it helps everyday PAKISTANI'S!

Ignore him. He calculates stuff in almost every single thread